2,589% Rate Hike Is Fraud, Policyholder Says

BIRMINGHAM, ALA. (CN) – Protective Life Insurance Co. defrauded a policyholder and breached contract by offering her teaser rates for cancer insurance at $29 a month, and increasing them to $751 per month, Shelby Looney claims in Jefferson County Court. She claims the insurer concealed from her and others with health problems that it would isolate them in a closed group so that their premiums “would escalate over time causing the covering to become oppressively expensive” in a “death spiral.”